Arbitrator allows county to proceed with claim

Stephen Curran

Wednesday, July 27, 2005 | 8:50 a.m.

An arbitration panel has reversed a two-month-old ruling that barred Clark County from pursuing its claim that AF Construction billed the county twice for an expansion to the county detention center, officials said Tuesday.

The three-member panel ruled last week that the county had enough evidence to proceed against AF, the private firm contracted to build the $104 million expansion to the detention center.

County officials have argued that the firm billed the county twice for the same work done to the project. The ruling allows the county to try to recover more than $10 million.

A ruling by the panel in May favored the construction company, saying there was not enough evidence to support the county's claim. A subsequent appeal gave the county the go-ahead to present the new evidence that county spokesman Erik Pappa said was crucial in last week's decision.

AF filed the lawsuit in 2003, charging the county with mismanagement, breach of contract and defamation.

Aviation Director Randy Walker, who has tapped to oversee AF's work, said the ruling bolsters the county's position.

"The arbitrators were able to see that the county has the evidence it needs to deserve to have its day in court before the panel," he said in a written statement. "We are confident that when all of the evidence is on the table, there will be no doubt that the county is entitled to recover millions of dollars."

Consultant Terry Murphy, who has spoken on behalf of AF, was on vacation and was unavailable for comment Tuesday.

AF Construction is also in litigation over alleged construction defects the county said has delayed opening of the Regional Justice Center for more than three years.

County commissioners in April voted unanimously to remove AF from the $185 million Justice Center project, saying the 17-story facility has been beset by construction problems, including 38 separate leaks in the roof, which inspectors said was covered with a sharp rock designed for landscaping purposes instead of smooth stones meant for roofing.

Strong rains earlier this year led to significant mold damage in the building, as water seeped in through the leaking roof, Walker said. The county has since contracted with a specialist to remove the mold, which by early April had permeated several levels, he said.

The bill -- expected to be hundreds of thousands of dollars -- will be among the money the county expects to recover from AF, Walker said.